ECB: ‘No One Saw Deflation Danger Coming.’ I Beg to Differ.

In a April 6 article for the Telegraph, leading deflationist Roger Bootle explains that "The Eurozone could do with a dose of QE, but don't hold your breath."

Here is an excerpt from the article:

The need for action is not only because the eurozone economy remains extremely weak but also because it is perilously close to deflation.

It has recently been suggested that the ECB has been overwhelmed by the advent of the deflation danger and that no one could have seen it coming. I beg to differ. For a start, beyond yours truly, several columnists in this paper have been warning of the danger. The collapse of inflation to the point where deflation is already a reality in some countries is the inevitable result of the eurozone economy running far below capacity, accompanied by huge levels of unemployment.

You can read the entire article here: